Bill Collectors and Illegal Debt Collection in Colorado
	General Rule. The Fair Debt Collection Practices Act prohibits specific collection action, such as publicizing the debt to anyone and harassing or annoying phone calls. During a bankruptcy, there may be no collection activity unless the court has lifted the stay or the debt is one of a few debts not subject to the stay, such as child support.

Under the Colorado Fair Debt Collection Practices Act (DCPA), there are legal limits on what a debt collector may do, whether or not you have filed bankruptcy. See Colorado C.R.S. §12-14-101 et al.

The purpose of the DCPA is to protect consumers from harassment, collection misconduct, and resulting injuries.

The DCPA also provides for legal court claims against debt collectors who engage in prohibited conduct.

You may recover against a debt collector:

1. Actual damages;

2. Statutory damages up to $1000;

3. Attorney fees;

4. Costs; and

5. Punitive damages (to punish the collector).

Actual damages include medical costs for treatment, lost wages, cost of changing a telephone number, loss of reputation, and emotional distress.

It applies to attorneys, debt collectors, collection agencies, companies that buy and collect consumer debt in default. It does not apply to lenders who are collecting their debts. However, the Federal Fair Debt Collection Act may cover lenders in some circumstances.

If you have filed bankruptcy, then no collection efforts can be made unless the automatic stay has been lifted by the court or the bankruptcy case has been dismissed or concluded.

After the bankruptcy discharge, no collection activity may be made whatsoever as to any discharged (eliminated) debt.

Within 5 days after you are first contacted, the collection agency must send you a notice stating the amount of money due and the name of the creditor who they represent.

Your Rights

You may dispute any part or all of the debt in writing within 30 days after receiving the written notice. The collection agency must then cease collection until it mails you proof of the debt.

You may request the collection agency to stop calling you at work or at home, contact you in writing only, or cease communication with you. Your request regarding contact must be in writing. The collection agency must comply with your request.

You may make a written request for a copy of your payment history.

Communication

A collector may not contact you by postcard.

A collector may not use an envelope that shows that the sender is a collection agency or that the contents concern a debt.

A collector may not call you before 8:00 a.m. or after 9:00 p.m. your time or at any other time which the collector knows is inconvenient for you.

A collector may not discuss your debt with anyone who does not owe it without your consent or a court order. Neighbors and relatives (who do not owe the debt) may only be contacted to obtain your address and telephone number.

A collector may not contact you if you are represented by an attorney.

Prohibited Collection Practices

A debt collector may NOT:

1. Use obscene or profane language.

2. Make repeated phone calls to annoy or harass, such as calling and speaking with you 3 times a day.

3. Telephone you without speaking his name within 60 seconds.

4. Threaten violence against you, your property, or your reputation.

5. Publish the debt other than reporting to 1 of the 3 credit bureaus;

6. State that he is an attorney if he is not licensed to practice law;

7. Claim that he works for a government agency or that he has government authority, if he does not.

8. Misrepresent that papers are legal documents when they are not or that documents are not legal documents when they are.

9. Misrepresent the amount of the debt or collect an amount greater than what you legally owe.

10. Threaten to take legal actions that are not legal.

11. Threaten to take or sell your property, garnish your wages, or attach your accounts unless that action is legal and the debt collector intends to do it.

12. Report false credit information about you.

13. Make you accept collect calls or pay for telegrams.

14. Deposit a post-dated check before the date on the check.

15. Engage in any collection activity if you are protected by the automatic stay in bankruptcy, unless the collection is for very limited purposes, such as child support arrears.

Actions which are Not Prohibited:

1. Contacting you by telephone, letter, telegram, or in person (unless you request in writing that the collection agency not contact you or you are represented by an attorney)

2. Refusing partial payment or suing you unless you have a payment agreement with the collection agency and are complying with it.

3. Adding interest to the debt if permitted by law or contract.

4. Adding information about the debt to your credit report. However if you dispute a debt, it must be listed as disputed.

5. Adding charges are permitted by law for a bounced check. The charges may include (a) $20 returned check fee if the $20 returned check charge is posted at the business; (b) the greater of $20 or $20% of the amount of the check; and (c) the amount of the check. The collection agency may also sue you for 3 times the amount of the check plus attorney fees and costs if you do not respond to a notice to pay a NSF check within 15 days.

Suggested Practices When Dealing with a Collection Agency

1. Do not change the priority of who you make payments to based on heavy handed tactics of bill collectors. Follow the advice of a professional as to how you can best get back on track with your finances.

2. Keep a record of all dates and times you are contacted by a collection agency, including the name of the debt collector.

3. Colorado does not prohibit the recording of telephone calls as long as the one doing the recording is one of the participants in the phone conversation. Record calls from abusive collectors.

4. Get all agreements in writing. An oral agreement likely will not hold up in court.

5. Hire an attorney to help you. Then the attorney can take all calls and relieve you of having to communicate at all with the collection agency.

6. If a lawsuit is filed against you, do not ignore it and allow a default judgment be taken against you. File a written response to the summons and complaint within the time allowed. You may have a legal defense or counterclaim because the merchandise or service was defective or the creditor used misrepresentation or pressure to create the debt. And, many time the statute of limitations has run on the right to collect the debt.

Wage Garnishment in Colorado

A creditor with a court judgment can usually take the minimum of 25% of your disposable income from your wages; or the amount which your weekly earnings exceeds 30 times the federal minimum hourly wage (currently $5.15/hr)

There are exceptions for student loans, child support and maintenance (alimony), and income taxes. In particular, 50 - 65% of your disposable income may be taken if you are in arrears for maintenance or child support.

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